Key Takeaways
- The Prime Minister noted that policymakers in the UAE are open to assisting Malaysia in shaping its regulatory framework.
- โEnsuring that it is regulated could safeguard the peopleโs interests and prevent leakages,โ he said.
Malaysia is taking steps toward developing a crypto regulatory framework. Prime Minister Datuk Seri Anwar Ibrahim recently engaged in discussions with officials from Abu Dhabi and Changpeng โCZโ Zhao, the founder of Binance, one of the worldโs largest cryptocurrency exchanges, to explore potential policy measures.
During his official visit to Abu Dhabi, Anwar emphasized the need for Malaysia to adapt to emerging technologies such as crypto, blockchain, and artificial intelligence. He expressed a commitment to ensuring Malaysia remains competitive in the global financial landscape, saying, โWe now face demands which require us to think about making significant changes.โ
To advance these efforts, Anwar directed key government bodies, including the Treasury, Securities Commission, and Bank Negara Malaysia, to evaluate how crypto regulations can be implemented effectively. This includes ensuring that regulations protect public interests while fostering innovation. โEnsuring that it is regulated could safeguard the peopleโs interests and prevent leakages,โ he said.
Anwar noted that policymakers in the UAE, recognized as leaders in crypto regulation, are open to assisting Malaysia in shaping its regulatory framework. โWe need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy,โ he added.
He emphasized the importance of acting quickly to avoid falling behind other nations. โThis innovation is just like AI, which would revamp the financial world. We should not sit idly by and wait and later be forced to do so after others have done it already,โ he said.
Malaysiaโs approach comes amidst heightened scrutiny of the crypto industry within the country. In late December 2024, the Securities Commission Malaysia ordered Bybit to cease operations alleging that it was running an unregistered digital asset exchange (DAX). Other platforms, including Atomic Wallet and KuCoin, have also been flagged for operating without proper authorization.
Acknowledging the challenges in crypto regulatory field, he added, โAs with all new ideas raised, there will be some concerns. We have to train our personnel, develop competency, and get the players to participate.โ
While crypto is not recognized as legal tender in Malaysia, digital assets fall under securities regulations, jointly overseen by the Securities Commission and Bank Negara Malaysia. Recent initiatives, such as the Inland Revenue Boardโs โOps Token,โ have highlighted the necessity of addressing tax compliance within the crypto sector. The police were able to acquire evidence of tax evasion through crypto trading data stored in the devices..
Last year, Malaysiaโs Energy Minister, revealed that illegal crypto mining has spiked in the country. He revealed that crypto miners stole at least $722 million worth of electricity over approximately six years.
